"We hope this would mark the beginning of good state asset management, focusing on the linkage between assets and peoples prosperity, eliminating conflict of interest and corruption," the minister said on the occasion of the inauguration of LMAN in Jakarta on Friday.
She said that, so far, state assets had not been managed optimally and had not added value to state revenue. In fact, most of the assets were neglected and burdened the states finances, she said.
For this purpose, the minister asked LMAN to work hard so that the institution, which has so far not been productive, can maximize state revenue.
"We have to think hard because no single piece of land should stand idle that it misses the opportunity to improve the peoples welfare. The people should not wait for another 50 years. We should create value and benefit immediately," she said.
Initially, LMAN has the task of managing the state assets but later it will get more assignments such as planning funding schemes, empowering the landbank, and paying land compensation.
With the new mandate, LMAN has to function not only as a treasurer or a funding provider but also as a special landbank for land procurement; the land will be used for public interest and strategic national projects.
In the revised state budget 2016, LMANs funding allocation for investment financing was Rp16 trillion.
In the 2017 state budget, the government allocated Rp20 trillion for land clearance for 50 infrastructure projects such as toll roads, transportation and dams.